an ideology that says government should represent the legacy of the past as well as the well-being of the present, and that society should be structured in a hierarchical fashion, that government should be humanitarian, and the stability of society is all important.

classical conservatism

people invest their personal resources in businesses. Profit and private property are the rewards of capitalism

profit motive

is a non-governmental organisation focused on human rights with over 3 million members and supporters around the world.

Amnesty International

important figure in Liberal political philosophy. He was an influential contributor to social theory, political theory and political economy.

John Stuart Mill

stresses sustainable economics, and environmentalism

green politics

the theory that certain knowledge is impossible

skepticism

the social group between the upper and working classes, including professional and business workers and their families.

middle class

the theory that individuals, groups, and peoples are subject to the same Darwinian laws of natural selection as plants and animals used to justify political conservatism, imperialism, and racism and to discourage intervention and reform.

social darwinism

refers to organizations that operate independently from any form of government and are not conventional for-profit businesses

Non-governmental Organizations (NGO)

Total market value of all goods and services produced in a country (3%-5% growth is normal)

Gross Domestic Product (GDP)

Classical Liberalism

-individual rights and freedoms

-economic freedom, private property, free markets

-civil liberties

-constitutional limitations on government

Adam Smith

-Capitalism

-Self regulating

-free market

-supply and demand

-invisible hand

-entrepreneur

-self interest

-competition

Chartisim

-universal suffrage

-pay for MPs

-secret ballot

-annual elections

Means of Production

-Land

-Labour

-Capital

The government of Canada recognizes the cultural and racial diversity of Canada and the freedom of all to preserve, enhance and share their cultural heritage

Multiculturalism Act of 1985

Economic laws such as minimum wage as well as other labor, Education system, legal system, health system, etc.

social structures

Created Canada's first universal health-care program and first publicly own automobile insurance program

tommy Douglas (1904-1986)

Advocates moderate political and social reform through government and supports social justice and the rights of workers

progressivism

economic freedom, laissez faire

capitalism

cooperation as an unintended consequence of the invisible hand without any deliberate design. People deal with each other voluntarily cause they believe that he or she will be better off. One party to a deal can only benefit if the other party also benefits

Free Market/ Private Market/ Market Economy

self interest is the incentive that drives both individuals in private life and individuals in government

Milton Friedman

based on spending on consumer confidence. output (GDP)

Business Cycle (Boom and Bust)

longer or deeper or both of a recession

depression

Counter Cyclical Policies

1. Fiscal Policy - Governments use of spending and taxing. To stimulate a sluggish economy the government will run a deficit by spending money on public works like roads and bridges. A budget surplus is used to slow an economy that is growing too quickly.

2. Monetary Policy- Government regulation of the supply of money to influence the economy.

To stimulate a sluggish economy the Bank of Canada lowers interest rates to convince people and companies to burrow and spend and raise interest rates to reduce borrowing and slow down economic growth.

kingdoms had begun to evolve in recognizable nations ( Britain, France, Spain). None of these were nation-states. People were subjects of their kings not citizens of a nation.

Europe in 1789

France was the most powerful country in Europe ruled by the Bourbon family. Louis XIV (1643-1715) was called the "Sun King" and his motto was "Nec Pluribus Impur" - none his equal He is famous for saying "L'etat c'est moi" or I am the state

The Rise of Absolutism

Absolute Monarch controlled their countries' economies. They believed that a country's economic strength was based on its supply of gold ans silver. The government controlled wages, prices and the quality of goods. Exports were emphasized and imports were limited. the government used protective tariffs to protect national industries. Skilled workers were not allowed emigrate. Monopolies were granted to create overseas colonies to gain access to raw materials and new markets.

Mercantilism

spiritual leader and the gatekeeper of heaven providing education, and welfare. They collected taxes and made law but demanded loyalty.

Roman Catholic Church

Humans became skeptical and questioned the feudal order and the catholic church. An urban, secular society developed that focused on trade and money

Renaissance (rebirth) 1400-1600

A split between the catholic church and protesters who its authority. Individual faith was placed above obedience to any leader (individualism)

Freedom of religion, speech, association, right to vote, to life, liberty and the security of the person.

Individual Rights and Freedoms

the freedom to buy what an individual wants and sell their labor, idea, or product to whomever they wish.

Economic Freedom

The economy is capitalist, but the government uses policies that directly or indirectly modify the market forces in order to ensure economic stability and a basic standard of living for its citizens

voluntary and open membership, democratic control by members and economic participation by members

cooperatives

only workers should profit from their labour, not employees or owners of the company Marx called for the abolition of private property

Marx

Totalitarian gov'ts control their group. If one member of a group criticizes the gov't the whole can be punished.

Collective Responsibility

groups impose norms, or standards on their members

collective norms

an ideology that people should have the maximum possible freedom. Gov't should not interfere with people's lives or their business activity

Classical Liberalism

the amounts of a good or sevice

Supply

how much people wanted a good or service

Demand

wrote "the wealth of Nations" defining Capitalism. He thought that a nation's wealth was in goods it produced not just gold, silver and agriculture. Productivity depended upon how well it combined land, labor and capital

Smith believed gov't control limited economic growth. The economy should be left to function according to the actions of individuals. Self-interest would lead business firms to produce only those products that consumers wanted at the lowest possible cost. The "invisible hand" was Smith's name for the economic forces that we call Supply and Demand or the firm market.

Adam Smith (1723-1790)

Roles of government in a capitalist system

provide for the national defense

protect competition and private property

enforce the law

Capitalist view of poverty (social darwinism)

Capitalist competition allowed the strongest to succeed. Poor people were weak or lazy. Poverty was an incentive to work harder.

iron law of wages

David Ricardo

thomas Maltbus

Malthusian checks on the population

Disease, famine, war, poverty are natural

Consumer sovereignty (dollar voting)

Consumer demand for a food determines what is produced. Producers use advertising to attract consumer demand and override consumer sovereignty

personal income

in capitalism is based on ability, training and experience of a person and on the demand for those capabilities

monopoly

a single business that controls production of a good or service and sets prices higher than they should be (Price Fixing, Gouging)

oligopoly

A group of businesses that collude to control the supply of a good or service artificially raise prices

major characteristics of the private enterprise system

private property

competition

freedoms to buy and sell

profit motive

little gov't intervention

inequality of wealth

decentralized decision making

pros of Capitalism

economic freedom

limited gov't intervention

competition encourages law prices good equality

maximum personal choice

Cons of Capitalism

prone to booms and busts

may harm the environment

high levels of poverty

companies try to eliminate competition

Centrally planned Systems

The gov't owns, plans and controls the economy. Also known as public enterprise, command economy, or communism.

karl marx

A german economist and radical thinker. He collaborated with Fredrich Engels to write Communist Manfisto in 1848 and Das Kaital in 1880. His ideas are generally referred to as Marxism or communism

Bourgeoisie

the urban wealthy and middle class owners of the means of production

Proletariat

the working class people who sold their labour

Karl Marx

Marx believed the haves exploited the have nots by selling goods that they made for a profit. (surplus value) He condemned the profit motive and private property as sources of class conflict. Marx believed that capitalism had to be destroyed in a revolution in order to create a new society (Classless society)

Economic Determinism

In the Dialectic method opposing forces compete until one is overthrown and a higher synthesis reached. Marx believed that economic classes were the opposing forces.

Scientific Socialism

Marx believed that history provided inevitable stages of struggle. These stages include slavery, feudalism, capitalism, and finally a socialism utopia.

Dictatorship of the Proletariat

The workers would seize control of the means of production. Capitalism would be destroyed and a socialist society created.

Withering Away of the State

After Capitalism ended the state would disappear. Crime and poverty would end. All base needs like food, shelter, and psychological security met.

Central Planning Board

answers the three basic economic questions for all of society

Advantages of Central Planning

Planning encourages high rates of economic growth

Planning helps reduce waste resources

planned economies do not suffer from economic cycles

prices are stable

all people have an acceptable quality of life

distribution of income is more equal

Disadvantages of Economic Planning

Little incentive for efficient management

system stifles individual effort

freedom of choice is restricted

black markets

consumer sovereignty is overlooked

bureaucratic and inflexible

Luddism

A protest of the early 1800s against industrialization and mechanization that would make hand labor redundant and threaten employment. Protesters broke into factories and destroyed machines. Parliament made this a capital offense.

Chartism

A working class movement that focused on political and social reform like universal male suffrage, secret ballot, pay for MPs, and annual elections.

Socialism

An ideology that believe that resources should be controlled by the public for the benefits of everyone in society. Socialist value the shrinking the gap between the rich and the poor through steep progressive taxation and by providing income security for all.

Utopian Socialists

Humanitarians who advocated an end to the appalling conditions of the average worker during the industrial revolution. They peacefully eradicate the worst aspects of capitalism (Evolution not Revolution)

Robert Owen (1771-1858) - Utopian Socialist

A textile mill owner in New Lanark, Scotland. He refuesed to emlpoy children, banned physical punishment, built homes close to the factory, provided a school for the children of his workers, and subsidized staple products in his company store.

Owen was convinced that id he created the right environment he could produce rational, good, and humane people. He spent his life with reform groups including factory reforms, adult suffrage and the development of trades unions.

The British Labor Party

Came from the Utopian Socialist Fabian Society. In canada the CCF was founded to replace the Capitalist system and the exploitation of one class by another.

Collective bargaining

negotiating as a group, collective bargaining is the key right for unions.

Arbitration

settlement of a dispute between a union and employer by a neutral third party

Lock out

A management tactic by which workers are kept from their workplace during a labor disruption